Denver Real Estate Blog

Homes were most affordable in Oklahoma City, and least affordable in Los Angeles. Denver ranked No. 28, sandwiched between Virginia Beach, Va., and Hartford, Conn. While the most expensive are in New York City, Sacramento, Miami-Fort Lauderdale and Boston.

In Denver, the cost of a typical home would eat up 31.75 percent of median household income, which is $4,583 per month. The median monthly mortgage payment in Denver is $1,323, but with the addition of $132 in property taxes a month the total payment would increase to $1,455.

If home costs exceed 30 percent of income, according to the U.S. Department of Housing and Urban Development’s guidelines, a family might find it difficult to afford food, clothing, transportation and other necessities. The nation’s average tab for a mortgage and property taxes is $1,144 per month. That would eat up 28.33 percent of America’s median household income of $4,038 per month.

The nation’s four most expensive markets for homes — and six of the seven worst — are strung along California’s Pacific coast. The pressure is most intense in the Los Angeles area, where the cost of a typical home would eat up three-quarters of the typical family’s monthly income. San Francisco-Oakland, San Diego and San Jose come next on the list of America’s most costly markets.

“Home prices have boomed and exceed what many Californians can afford,” The median owner-occupied home in the Los Angeles area was valued at $604,500 in 2006. A 6 percent, 30-year mortgage on such a house (after a 10 percent down payment) would cost $3,262 per month. Property taxes would drive the total payment up to $3,491.

That monthly tab would consume 75.5 percent of the median household income in the Los Angeles area, $4,626 per month. (Median is a midpoint, with half of all households earning more, and half earning less.) L.A.’s rate is more than two and a half times the national average of 28.3 percent.

Only three other U.S. markets — all in California — have consumption rates above 60 percent: San Francisco-Oakland (69.8 percent), San Diego (66.5 percent) and San Jose (64.6 percent).

If home costs exceed 30 percent of income, according to the U.S. Department of Housing and Urban Development’s guidelines, a family might find it difficult to afford food, clothing, transportation and other necessities. The recent housing slump has done little to bring prices back in line. Home values in some high-cost markets have declined a bit since 2006, though they remain steep.

Los Angeles experienced a price drop of 13 percent during the fourth quarter of 2007, yet its average price for the entire year stayed 0.8 percent above 2006 levels, according to the National Association of Realtors. The value of San Diego’s real estate dropped 2.2 percent for the year. But San Francisco-Oakland and San Jose actually had higher prices in the final three months of 2007 than a year earlier.

Resource

A Colorado Rental Property Resource for both landlords and tenants can be found at http://www.coloradorentalproperty.net . Online land lords can post detailed information regarding their rental property, including 5 color photos. The ad can be self directed by the landlord to their cell phone or property management company. This is a service provided FREE by RealEstateColorado.Net and the ad will remain on line until it is asked to be removed.

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If you would like additional information about the Denver Real Estate area in Denver Colorado as well as anywhere in Denver Metro Area contact us at 1-800-791-3990 ext 232.

Jeffery McClintock, is a real estate broker in Denver and prides himself on providing clients with professional guidance in all phases of residential new construction, including market research, product development, consulting, marketing and advertising. His personal mission is to bring to you a level of knowledge, experience, commitment, high standards and results to answer your real estate needs. He believes, the most effective way to provide superior service is to build a strong working relationship with you. His system includes regular consultations and feedback, which is the best tool for identifying and clarifying your real estate objectives and help define strategic solutions.

Jeffery has been a licensed Realtor since 1995. During this time he has successfully closed over 135 million dollars of residential real estate, and 40 million dollars in un-improved land amounting to 660 individual real estate transactions. His professional experience includes the Denver Colorado front range and the Second Home market in Breckenridge, Colorado located in Summit County.